Shared Ownership Mortgages

kragen_ironfist

Hi there, I have recently had a letter offering me a 40% share of a 2 bed end of terrace house with garden and off road parking for £58,000 - an offer that I really want to be able to say yes to given that it ticks almost every box when it comes to the requirements I set for choosing a suitable house to buy.

I am going to view the property tomorrow, but I need to know my next step in regards mortgage

My income in approx £21,000 (I am a bus driver) and my job is as secure as it can be i.e. the company doesn't look like going bust, and I am not under any disciplinerary procedures :P

I also have a lodger who pays me £100 per week (£5200 p/a)

However I do also have a debt of approx £10,000 on an MBNA credit card with the interest ratee fixed for the life of the balance.

My other big hurdle is I have no money for a deposit.

so my questions are...

1) is it likely that I will be able to get a 100% loan to value of the 40% share in this property

and

2) if so where do I start?

kragen_ironfist

oh and what sort of interest rates (ball-park) would I be looking at? around 4-5%? or would 7-8% be more realisitc?

poppysarah

How quick could you pay off your credit card?

poppy10_2

kragen_ironfist wrote: »

However I do also have a debt of approx £10,000 on an MBNA credit card with the interest ratee fixed for the life of the balance.

My other big hurdle is I have no money for a deposit.

so my questions are...

1) is it likely that I will be able to get a 100% loan to value of the 40% share in this property

No .

Robert_Sterling_3

I agree that the answer is no.

virgo149

Contact the sales team of the housing association who owns the property and ask them which IFA they recommend. Most should use one or two. They will be able to tell you very quickly then if you are OK with your current debts. They may also have access to a couple of products not out on general sale.

The two IFA's we put people in touch with are experts in Shared Ownership and can work wonders for applicants. There are still some lenders, subject to your situation that are lending 100% of the share amount - Dudley Building Society and the Halifax are two we are using in the midlands.

A small note about your lodger - if it were our HA, all residents would have to be approved - sub letting is not permitted.

devon_guy

To me knowledge the Halifax are not allowing 100% of borrowers share on Shared Ownership. The leeds used to but I think that has now dropped to 90%.

virgo149

I have to approve mortgage offers and we definately have had some recently.